Online Vending Agency RFP
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1 Online Vending Agency RFP CORP:3024 Clarification Session 03 December 2014
2 Housekeeping Rules Powering your world 1
3 The Aim of the Clarification Session 2
4 Key Topics Business of the day Online Vending Agency RFP Clarification Background Commercial Requirements Objectives of the RFP Eskom Online Vending Model Functional & Technical Requirements. Supplier Development & Localisation (SD&L) Quality Requirements Commercial Requirements 3
5 Background Eskom is already vending prepaid electricity through five National Online Vending Agents that interface with its Online Vending Server. In order to expand the vending operations and serve our customers better, Eskom wishes to identify suitable online vending agents with operational vending systems and infrastructure that complies with the XMLVend specification as a vending protocol. Eskom intends to award contracts to a maximum of 10 (ten) qualifying service providers. 4
6 Online Vending Agency RFP Clarification Session CORP 3024 Supplier Development and Localisation (SD&L) in line with PPPFA
7 Evaluation Criteria Phase 1 Functionality Phase 2 Preference points (B-BBEE) B-BBEE B-BBEE certificate will be evaluated according to 90/10 rule N/B Price will not be applicable Phase 3 Phase 4 Supplier Preference Supplier Development & Localisation (including Enterprise Development) Preference will be given in the following order: Enterprise s Owned by Black People Living with Disabilities (BPLwD) Black Youth Owned Businesses (BYO) Black Women-Owned Businesses (BWO) Black Owned Businesses (BO) Other Suppliers To be negotiated with the successful tenders Local content Sub-contracting Skill development Job creation
8 Phase 2: Preference points (B-BBEE) B-BBEE Status Level of Contributor Number of points (90/10 system) Non-compliant contributor 0 The evaluation matrix essentially provides points on the basis of a level contribution attributed to each supplier with Level 1 contributors being the most favoured.
9 Enterprise Development - (Mentorship Programme) The table below indicates requirements for Bidders that are categorised as Large Measured Enterprise (LME), with a turnover of R35m and above, according to the B-BBEE codes of good practice. Mentorship Emerging supplier development (e.g. provide assistance or support with development of their systems to comply with Eskom s technical specification) Eskom s Target 2 Mentees will be coming from the evaluation process undertaken by Eskom = CORP 2801 Sub-Contracting Skills transfer shall form scope of the mentorship programme. The selected emerging service providers will be contracted as sub agents by the Principal Agent, while being mentored (for the duration of the contract 3 years). The mentorship shall form part of the contractual obligations with qualifying Measured Enterprises (LMEs) An implementation plan will be required, signed and submitted 30 days after contracting.
10 Criteria for Enterprise Development Service providers who are tendering for national will be expected to mentor a minimum of 2 emerging suppliers in line with the following: Eskom will be awarding contracts to a maximum of 10 (ten) service providers, The selected companies will then be checked if they are Measured Enterprises (LME), with a turnover of R35m and above, according to the B-BBEE codes of good practice, so that the requirement for mentoring 2 emerging service providers could be applied. The emerging service provider mentees will be coming from the evaluation process undertaken by Eskom, and these will be service providers that will have met the minimum compliance for the document and theory evaluation. These emerging service providers will have failed the minimum technical application compliance required by Eskom. 9
11 Criteria for Enterprise Development The selected emerging service provider will be contracted as sub agents by Measured Enterprises (LMEs), while being mentored (for the duration of the main contract 3 years). The mentorship shall form part of the contractual obligations with qualifying Measured Enterprises (LMEs) An implementation plan will be required, signed and submitted 30 days after contracting. The purpose of the implementation plan is for the approved Measured Enterprises to demonstrate how they will implement the commitment on mentorship. The implementation plan will have time lines reviewed quarterly and quarterly reports will be required on the progress of mentorship. 10
12 Skills Development The table below should be completed only by Bidders who are categorised as Qualifying Small Enterprise (QSE) and Exempted Micro Enterprise (EME) Skills Type Customer Service IT Technician(Server & storage) Marketing (Direct Sales) Installation & Maintenance
13 Online Vending Agency RFP Clarification Session CORP 3024 C Commercial Requirements
14 What is New this time around..? Threshold = 1 Tech Test = 100% Pass Mark = 80% Tech Theory (Special cond) Quality (obj criteria) PPPFA 04/12/
15 Contacts & Submission Deadlines Eskom Representative during this Tender - Nokuthula Ntshingila - ntshinno@eskom.co.za Contact No Deadline of Tender submission - 18 December 10h00 South African Standard Time (SAST) Deadline for Clarification of queries - 12 December 2014 Validity of this Tender days Tender delivery address The Tender Office Centre Eskom Megawatt Park Opposite Main Reception Desk Maxwell Drive Sunninghill 14
16 Commercial Tender Returnables Item List of Returnables Reference 1 COMMERCIAL 1.1 Cover Letter 1.2 Confirm of Receipt of Addednda to Tender Documents (Mandatory for award) 1.3 Authority to submitt Tender documents (Mandatory for award) A Completed Declaration of fair bidding practice (Mandatory for award) A Probity of Close Family Members or Beneficiaries (Mandatory for award) A.4 A Valid B-BBEE Certificate from an Accredited Verification Agency or a letter from the Audit/Accounting Officer for the Exempted Micro Enterprices (EMEs) (Mandatory for award and points allocation) Shareholders of the Tenderer and respective percentages of such shareholding (Mandatory for award) If all/some of the shareholders listed in 1.6 above are entities they should provide shareholders of such entities and their respective shareholding percentages. (Mandatory for award) If information in 1.7 and 1.8 is older than three months. Bidder's External Auditors must issue letter confirmin current accuracy. (Mandatory for award) A complete list of names and identity numbers of the directors of the tendering house including the % of the shareholdings. A.5
17 Commercial Tender Returnables cont. 1 COMMERCIAL Valid SARS Tax Clearance Certificate (IRP20) (applicable if the tenderer is a South African tax payer) Valid IRP 30 SARS certificate if operating as a labour broker in terms of the Income Tax Act No.58 of 1962 (Mandatory for award) Separate form 1.13 PAYE Supplier evaluation pack Schedule of Proposed Sub-Contractors/Associates (Mandatory for Award) The agreement for any associations with other companies in the form of joint venture, patnership or consortiums (Mandatory for Evaluations & Mandatory for award) for the purpose of this tender (Only apply to JV's and Consortia) A Declaration with regard to company or (Mandatory for award) A Contact details of the Supplier (Mandatory for award) A.8
18 Technical Tender Returnables Item List of Returnables Reference 2 TECHNICAL 2.1 Category Preference (Mandatory for award) B Value Adds (Mandatory for award) B Document Theory Evaluation Questionnaire (Mandatory for award) B Practical Evaluation Criteria (Mandatory for Evaluation, award & point allocation) Appendixes A-G 2.5 Technical Compliance Requirements Vending agency business model supported (XMLVend Compliance) Ability to support Online Vending (first line support, disaster recovery, architecture) Point of sale device (Indication of devices that will be deployed) Technical Compliance Requirements Vending agency business model supported (XMLVend Compliance) Ability to support Online Vending (first line support, disaster recovery, architecture) Point of sale device (Indication of devices that will be deployed) (Mandatory for Evaluation)
19 Financial Returnables Item List of Returnables Reference 3 FINANCIAL RETURNABLES Audited Financial Statements of the tenderer for the previous three (3) financial years, or to extent that such statements are not available, for the last year. Tenderers must note that in case of a venture or special purpose vehicle (SPV) escpecially formed for this tender, The latest two years sets of audited annual financial statements e.g. 2013/2012 and 2012/2011 for each participant in the JV OR For new organisation (Full set management accounts with an independent review by an auditor for each participant in the JV (Mandatory for Evaluation and award) For incorporated joint ventures The latest two years sets of audited annual The latest two years sets of audited annual financial statements e.g. 2013/2012 and 2012/2011(Mandatory for Evaluation and award & points allocation) 3.3 Price adjustments and payment methods (Mandatory for Evaluation) C Price Schedule/Rates (Mandatory for award & points allocation) C.2
20 Evaluation Criteria Evaluation criterion Stages of evaluation Compliance and a) Paper / Theory evaluation (also be used for shortlisting ) b) Commercial tender returnables conditions of tender Functionality Phase 1 a) Technical Evaluation Preference points (B-BBEE) Phase 2 B-BBEE certificate Preference Phase 3 Preference on this tender will be in line with Section of the Eskom Procurement and Supplier Management Procedure on the Hierarchy of Supplier Preference, from Black Suppliers in the following order. From Black suppliers, in the following order: Businesses owned by Black people Living with Disabilities Black Youth-Owned Businesses Black Women-Owned Businesses Small Black Enterprises Large Black Suppliers 19
21 Evaluation Criteria Evaluation criterion Stages of evaluation Supplier Phase 4 Development & To be negotiated with the successful suppliers on the following: Localisation Job creation Skills Development Sub-Contracting Quality To be negotiated with the successful suppliers for completion before the contract is awarded 20
22 High level dates Activity Envisaged Date Advertisement in news papers 23 November 2014 Clarification Session 03 December 2014 Closing 18 December 2014 Evaluations Jan April 2015 Adjudication Tender Committee May 2015 Negotiations May 2015 Award July
23 22
24 Key Objectives of this RFP To identify potential Vending Agencies that wish to vend prepaid electricity tokens to Eskom customers. To identify potential Vending Agencies that can provide a vending service in areas that have insufficient vending coverage at the moment. To evaluate other Vending technologies or channels that might be proposed by Vending Agencies to provide improved services, provided that they utilise an XMLVend compliant interface to communicate with Eskom s central online vending server. 23
25 What is Online Vending? Online Vending, simply described, is a system that enable customers to purchase prepaid electricity via virtual or remote terminals located in retail outlets or in new or existing vending stations. This system vends electricity from the main Eskom central server in real-time. Compliance with the XMLVend Specification is critical for this operation and will be applicable to all Categories. Full compliance with the XMLVend interface protocol. (Some clients may not implement all the required use cases). But, for the purpose of the technical evaluations, vending agents will be required to be tested for full XMLVend compliance regardless of the client terminals to be used. 24
26 Online Vending Service Mantra Online Vending allows customers to purchase prepaid electricity tokens Anywhere, Anytime and Anyway* Limpopo Mpumalanga North West Gauteng Free State Kwa-Zulu Natal Northern Cape Eastern Cape Western Cape Internet *Via legal & Eskom approved channels 25
27 Customer Service Operating Units 1) Northern & Western Cape 2) North West & Free State 3) Eastern Cape 4) Kwa-Zulu Natal 5) Gauteng 6) Mpumalanga 7) Limpopo 2 7 Limpopo 6 Mpumalanga Limpopo 1 North West Gauteng 5 Mpumalanga North West Gauteng Northern Cape Western Cape Free State Eastern Cape Kwa-Zulu Natal Free State 4 Kwa-Zulu Natal Northern Cape 3 Eastern Cape Eskom prepayment customer base is currently around 4.5 million. Western Cape 26
28 Migration to Online Vending Eskom Walk-In Centres Phase 1 +/ 1600 Off-line Vending Agents Phase 2 Real time Not real time Contact Centres Retail Chain Stores Merchants ATM s Increased National Vending Footprint & Accessibility through deployment of various point of sale devices / channels + Internet Phase 3 Phase 4 Prepaid Electricity Tokens used be sold from Eskom Walk-In Centres before +/ Offline Vending Agents were appointed in the communities that Eskom is supplying directly. EasyPay pay points and vending outlets (Retail Stores, Service Stations Banks etc) were later added to increase the options and expand the national footprint. The current phase is that of implementing Online Vending and thus deploying multitudes of new virtual channels 27
29 Online Vending Model Customer Data Downloads Transactions Downloads Fire Wall Secure Eskom Environment External to Eskom XMLVend Customer Care & Billing Database Online Vending Database Client Machines XMLVend Gateway - Server SAP Credit Uploads Internet Bank Bank Deposits 28
30 Envisaged Service Relationship Service Relationship Compact: Eskom sign Service Level Agreements (SLA s) with Principal Agents Principal Agents provide service via Sub-Agents. Sub-Agents not allowed to further sub-contract. Sub-Agents sell directly to Eskom Customers. Eskom still custodian of its customers & enforce proper customer service delivery. Eskom Principal Agents Sub-Agents 29
31 Vending Agency Key Performance Areas Guide to overall compliance Vending Agency KPA s 30
32 31
33 Online Vending Agency RFP Clarification Session CORP 3024 Technical Requirements
34 Contents XMLVend specification Testing Process Use Cases to be tested Functionality Required 33
35 XMLVend specification XMLVend 2.1 is a secure and open web service based protocol that facilitates prepayment vending functionality between a single logical vending server and n number of clients. The generic XMLVend specification is needed for development since the Eskom specialised documents refer to the generic XMLVend specification. However, the Eskom specialised version of XMLVend must be implemented by all parties who are interested to provide prepayment electricity vending for Eskom. 34
36 Testing Process Test Server RFP Issued Clarification session Tender submission and closure Evaluations : Technical compliance testing pre-arranged sessions Contract award (cannot vend LIVE! yet) Pre Commissioning SSL and Issue Advice Confirmation Test Vend GO LIVE! 04/12/
37 Testing Process (cont.) Vendor Own client server Vending device to be used for requesting tokens Voucher / token printer / some display method Magnetic card encoder Eskom LAN connectivity between the Reference Test server and the client server Reference Test server Magnetic tokens Meter cards Meter card reader 04/12/
38 Use Cases to be tested Purchase Credit Token Purchase Credit Token with Debt Recovery Function Purchase Credit Token with Debt Recover Function and Free Basic Electricity Dispense Free Basic Electricity (FBE) Token Reprint Token Confirm Meter Details Update Meter Key Vend token for Magnetic Meters Write and Update Customer Meter Cards Customer Fault Reporting Receipt layout Issue Advice Last Response SSL 37
39 Functionality Required Functionality Numeric Magnetic Number only based vending Yes Yes Purchase Credit Token, including:- Yes Yes Purchase Credit Token with FBE Purchase Credit Token with Debt Recovery Purchase Credit Token with Over Recovery Purchase Credit Token with Debt Recovery and FBE Collect FBE Token Yes Yes Reprint Transaction Yes Yes Pay Debt (manual selection to pay) Yes Yes Account Payment (manual selection to pay) Yes Yes Confirm Meter Details Yes Yes Swipe Meter Card Yes Yes Enter all data (Blind vending) Yes Yes Capture Customer Fault Yes Yes Update Meter Key Yes Yes Encode meter card Yes Yes Convert numeric to magnetic token No Yes Produce magnetic tokens No Yes 04/12/
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